More sellers than buyers in Ontario's prized holiday region

Globe and Mail

13 hours ago

House hunters in Ontario's Prince Edward County have plenty of choice: Victorian-era farmhouses, waterfront estates and modern stacked townhouses are currently listed for sale.
For entrepreneurs, an artisanal cheese factory, a distillery, a boutique hotel, a marina and a handful of wineries are among the live-work opportunities.
As June wound down, more than 300 listings were active on the peninsula about two hours east of Toronto and surrounded by the waters of Lake Ontario.
'There are definitely more sellers than buyers,' says Tammy Noyes, real estate agent with Century 21 Lanthorn Real Estate in Picton, Ont.
Ms. Noyes says more homeowners are getting ready to list as the area known for small towns, rolling farmland and Sandbanks Provincial Park prepares for a rush of summer visitors.
Many out-of-towners are also drawn to the arts scene and farm-to-table dining.
In May, Prince Edward County recorded 31 sales and 134 new listings, according to the Central Lakes Association of Realtors (CLAR). The average number of 'days on market' stood at 53.
'Even when you're well-priced, you're still sitting for almost two months,' says Ms. Noyes.
About half of the buyers she deals with are from out of town, Ms. Noyes says, with many coming from Toronto, Ottawa, Hamilton and Quebec.
In many cases, city dwellers are looking for a second home with a plan to make it their principal residence when they retire.
Ms. Noyes also deals with first-time buyers who work in Belleville, Ont., and other nearby cities.
She has noticed an uptick in offers in recent weeks.
'Some aren't going anywhere,' she says of the negotiations. 'Buyers are very patient. They wait a few weeks, then go back and try again.'
The dynamic has changed dramatically from the early years of the COVID pandemic, when Prince Edward County saw an influx of urban dwellers seeking a small-town or rural lifestyle.
Bidding contests were frenzied and the average price soared above $1-million.
But sales and prices were in retreat by 2023 as interest rates climbed. More stringent rules around short-term rentals also cooled investor demand.
At the end of May, the average price in PEC stood at $727,981, according to CLAR.
Gail Forcht, broker with Chestnut Park Real Estate, says sellers today damage their prospects by insisting on prices achieved during the pandemic, when interest rates were at historic lows.
'We had insanity,' she says of the years between 2020 and 2022. 'We were too popular, and money was cheap.'
Ms. Forcht says she prefers not to take on listings when sellers are hanging on to prices achieved at the peak.
'Those are tough because they become stale, they become stigmatized,' she says.
In some cases, properties have been listed at the same price since the pandemic era.
'People say, 'Why would I pay that? It's been on the market for four years.''
One property that was listed with an asking price of $2.25-million in 2022 has gone through a series of price reductions and still hasn't sold.
'Now it's at $1.799-million with agent number three,' she says.
Earlier this year, Ms. Forcht had interested buyers for a home that had been sitting for two years with an asking price of $1.895-million.
The house was well-designed, with water views from every window, but it was very dated, she says. The clients submitted a conditional offer, but another buyer came to the table with a bid that had no conditions.
The property sold for $1.2-million.
'You're kind of a sitting duck when you've been sitting for so long,' she says of the sellers.
Ms. Forcht is currently working with a couple from British Columbia who would like to be closer to their grandchildren who live in the eastern part of the country.
The clients are flexible about the location, but they do want a well-renovated home, she says, adding that buyers at that stage of life typically don't want to undertake a major project.
Although PEC has plenty of listings, many renovations are now dated, she says, or recent facelifts have been cheaply done.
Ms. Forcht points to one couple from Alberta who purchased a house on the water in June in the $2.395-million range. They chose that one over some others in the area because the finishes were more classic, she says.
Younger buyers, meanwhile, also want a turnkey home, but they are looking for the most contemporary finishes.
'They walk in and it's perfect because it's white, grey and black.'
She says her clients from the West Coast have little pressure because they are not committed to PEC – they are also considering Collingwood, Ont., and the Maritimes.
Sellers, she advises, need to recognize that buyers are feeling little urgency.
If a house is languishing, she recommends listening to the buyer feedback from showings. That could mean either updating the kitchens and bathrooms or cutting the price.
'You need to meet the market head-on,' she says. 'Just don't drag your heels on it.'
Ms. Forcht adds that another factor slowing down some purchasers is that they need to sell an existing property first.
'I have a number of interested buyers. They have come to a halt because they have a condo to sell in Toronto.'
Anita Springate-Renaud, broker with Engel & Volkers, has listed a family member's three-bedroom home with a new dock on the Bay of Quinte.
The house with 116 feet of waterfront at 131 Peats Point Rd. has an asking price of $2.295-million. At that price point, Ms. Springate-Renaud says, the house will likely appeal to someone from Toronto, Ottawa or Montreal looking for a full-time residence in retirement or a recreational property.
'Mine is a four-season. It will also appeal to those crazy people who do ice fishing,' she says with a laugh.
Ms. Springate-Renaud is seeing similar market trends at her firm's offices in Collingwood, Muskoka and Owen Sound.
The areas around Georgian Bay and Muskoka saw a dramatic run-up in sales and prices at the start of the pandemic.
'Buyers are more cautious about the second home market,' she says of the current mood.
Ms. Springate-Renaud believes sellers are listing now because they are optimistic that sales will pick up if interest rates fall further and Canada successfully negotiates a new trade deal with the United States.
'They're getting tons of listings – more than they normally get at this time of year.'
Ms. Forcht is not anticipating that an increase in holiday makers will lead to a bump in real estate sales. Serious buyers circulate in the late winter and early spring, she says, so they can pick up the keys by the time warm weather arrives.
'Summer is generally wishers, dreamers and 'it's raining at Sandbanks – let's go look at houses.''